How to pay yourself as an entrepreneur

If you’re an entrepreneur who doesn’t know how to pay yourself this post is for you. I know it can be confusing, so I’m here to clear it up so this doesn’t hold you back anymore.

If you’re an LLC or sole-proprietor, simply transfer money from your business to your personal accounts. You can write a check or do a bank transfer. This money will be categorized as Owner’s Pay on the balance sheet. It is not a business expense.

If you’re a S or C Corporation, you’ll pay yourself as an employee on payroll along with distributions to maximize tax benefits. Every state and situation is different, so ask your bookkeeper or accountant for details.

Need help with your payroll? I offer this service to my monthly clients!